Faurecia strengthens its industrial presence in Iran, forms two new JVs

The Iranian automobile market production is very dynamic and is expected to grow from 1 million vehicles in 2015 to 1.8 million by 2025, representing an average growth of 6 percent per annum.ETAuto | December 03, 2016, 18:07 IST

NEW DELHI: Automotive equipment supplier Faurecia on Friday announced the signature of its third joint-venture agreement with Iranian partners. The Faurecia Crouse Advanced Exhaust System (FCAES) joint-venture for emissions control systems was signed in Paris between Faurecia and MAAD, a Crouse and Avrand joint-venture.

FCAES will develop and produce emissions control systems for the Iranian automotive market. The joint-venture will cover both hot end and cold end emissions control systems, based on Euro V standard, with first local production scheduled to start at the end of 2017. Total sales are expected to reach € 50 million in 2020, representing a 25 percent market share.

AFISCO (the 50/50 Faurecia – Azin Khodro joint-venture) for vehicle interior systems, will develop and manufacture instrument panels, door panels, center consoles, acoustic and soft trim modules, with start of production in early 2018. AFISCO expects its total sales to reach € 50 million in 2020.

FAPSCO (the existing Faurecia joint-venture for automotive seating) will expand its complete seats, frames and covers activities in the country beyond its current customer Renault to serve Peugeot, Iran Khodro and other automakers. FAPSCO expects to grow its business to 340,000 car sets per year and total sales of € 150 million in 2020.

With this third joint-venture, all three Faurecia business groups will be present in Iran.

The Iranian automobile market production is very dynamic and is expected to grow from 1 million vehicles in 2015 to 1.8 million by 2025, representing an average growth of 6 percent per annum.

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In 2018, automobile demand remained robust despite the slowdown overcast in the last three months of year. All segments reported strong double-digit growth in the calendar year ending December 31 except passenger vehicles which reported a growth of 5 per cent. Three-wheelers sales grew fastest followed by commercial vehicles, two-wheelers, and passenger vehicles. The overall automobile sales crossed 26.7 million units for the first time.

In 2018, automobile demand remained robust despite the slowdown overcast in the last three months of year. All segments reported strong double-digit growth in the calendar year ending December 31 except passenger vehicles which reported a growth of 5 per cent. Three-wheelers sales grew fastest followed by commercial vehicles, two-wheelers, and passenger vehicles. The overall automobile sales crossed 26.7 million units for the first time.